2001 (9) TMI 190

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..... that "It is, thus clear that such bulbs which are used for testing are not cleared for sale to the customers. As such, the question of leviability of duty on them does not arise because, not only they are not cleared cut they are rendered unfit for use as they get used up in the course of such testing. This being the position, the question of leviability of duty does not arise." 2. The facts .....

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..... order and allowed the appeal of the respondent herein. Being aggrieved by this order, Revenue has filed the captioned appeal. 3. Shri D.N. Choudhary, ld. DR submits that in the instant case only one or two bulbs are selected out of a lot fit for marketing. He submits that entire lot is cleared only one or two bulbs are taken up for testing. He submits that therefore, since the bulbs are in full .....

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..... ed the appeal of the respondent herein holding that no duty was payable on the bulbs taken up from a lot which was cleared before awaiting the test results. He, therefore, prays that the appeal may be allowed. 4. Shri P.N. Kaul, ld. Counsel appearing for the respondent herein submits that the respondent herein had to manufacture bulbs in accordance to the Standard set under BS1853 (BSI 1779A) fo .....

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..... e held that quality control test is virtually a mandatory test and therefore, those portions of cables used in mandatory quality control test cannot be considered as excisable goods manufactured. Ld. Counsel submits that the bulbs in their case subjected to quality control were completely destroyed and therefore those bulbs cannot be considered as excisable goods manufactured. He submits that this .....

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..... s, the bulbs get destroyed fully. Since these particular bulbs were no doubt at the time of selection were excisable goods but when they got destroyed at the time of conducting those tests, they no longer remained fully manufactured for purpose of levy of excise duty. The fact remains that these bulbs were not cleared from the factory and got destroyed in the process of test. I, therefore, hold th .....

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